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I am getting the following whenever I attempt to upgrade a unit. 'No Free Slots' 'Upgrade not possible'. Obviously I am trying to do something I can't. I just don't know what. Any help is appreciated.
I notice on page 24 of the manual the words 'In the American theatre' does this mean upgrade only works for the Americans? I am playing the British side. I also realize that only some units can be upgraded. I think I have tried them all without success and the above line 'No Free Slots"

ORIGINAL: Hobo5

I am getting the following whenever I attempt to upgrade a unit. 'No Free Slots' 'Upgrade not possible'. Obviously I am trying to do something I can't. I just don't know what. Any help is appreciated.
I notice on page 24 of the manual the words 'In the American theatre' does this mean upgrade only works for the Americans? I am playing the British side. I also realize that only some units can be upgraded. I think I have tried them all without success and the above line 'No Free Slots"

You are only allowed a certain number of specific unit types. Once you reach that number of units you can't build any more of that type of unit. It will be greyed on the build screen. That keeps you from making the entire British Army into Grenadiers.
That said if can't upgrade to a Light Infantry, for example, and you have 3 250 man Lights in a force you can disband one (reinforcing the other at presumably higher experiance that replacements) and free up a space build/upgrade another Light in a different location.

I understand.  It took a while to get my mind around this one but I do understand and it makes sense.  Thanks for your response.  It appreciated.

No problem.

One thing I found to be a big benefit is disbanding experianced units to keep morale high while reinforcing other units. This works really well for the Brits once they build up a good supply of weapons. Just make sure the force you are disbanding the unit in is composed of only units with high experiance then disband the lowest experianced unit. Your reinforced untis will hardly suffer any experiance loss and become really powerful!

Another advantage of disbanding smaller units is that units below a certain strength (250 I think) suffer from reduced morale. Also, if I recall correctly, it gets worse as the unit gets smaller. Couple that with the fact that small units don't have much firepower or melee strength (since they have fewer troops), and it pays to keep your units up close to full strength. As Napoleon observed, victory (in "For Liberty" at least) usually goes to those who have the bigger battalions, and not necessarily those who have the most troops overall.

Disbanding is also useful for reinforcing militia units.

And, indian tribes!